737 max: Boeing could receive an allowance of $ 237.5 million from administrators

An agreement has been concluded after shareholders’ shareholders accused former and current members of the Board of Directors to have failed their obligations on the safety of the aircraft. Two devices had fashed in 2018 and 2019.

Le Monde with AFP

Boeing shareholders have concluded with aircraft manufacturer administrators, accused of negligence after the two accidents of the 737 max, an amicable agreement providing for payment to the company of compensation of $ 237.5 million ( about 205 million euros).

While still being validated by a judge, the agreement, including The Wall Street Journal has echoed first Thursday , was made public, Friday, November 5, by the New York State Controller Services and the Colorado Fire and Police Retirees Association. In June 2020, they had the Court of Chancellery of Delaware, a jurisdiction specializing in litigation of shares and title deeds.

Launched in 2011 and commissioned for the first time in 2017, the 737 max was involved in two air crashes, one of Lion Air company in October 2018 and the other from Ethiopian Airlines in March 2019 , who did 346 dead in total. Investigations revealed that these accidents were linked to the anti-stall system (MCAS).

Shareholders have highlighted the fact that none of the board committees focused specifically on security.

“We continued Boeing’s board of directors because he missed his responsibility to monitor safety and protect the company, shareholders and clients against dangerous business practices,” commented on a Communiqué The New York State Controller, Thomas Dinapoli.

These shareholders reproached former and current members of the Board of Directors to have failed their obligations by not ensuring the existence and the proper functioning of instruments of control and information relating to Security of 737 max. The benefits planned for Boeing will be supported by the insurers of the persons covered by the complaint, even though the agreement does not include recognition of negligence on their part.

“Restore the reputation of the ‘business “

The text also includes the creation of a mediator position to which certain employees can directly bring their remarks on the working conditions as well as the appointment of an additional administrator with an “aviation / aeronautics, engineering” experience and / or supervision of product safety “.

It also plans to continue to include criteria on aviation safety in the calculation of executive compensation and the publication annually in a report on improvements in this area.

“We hope that in the future the reforms agreed in this agreement will help protect Boeing and passengers from other tragedies and will start restoring the reputation of the company,” concluded Thomas Dinapoli.

A group spokesperson assured that since accidents, Boeing “has taken important steps to accentuate and strengthen its commitment to aviation safety”. The manufacturer has appointed in 2021 to its board of directors Stayce Harris, which has more than 10,000 hours of flights on Boeing aircraft, and David Joyce, former leader of the GE Aviation engines manufacturer.

Additional reforms in the Agreement “will further advance the safety and quality of our work,” added the spokesperson.

/Media reports.